Chuck, it depends on the goals, objectives and needs of the portfolio. I will address this generally in part 2. But to be clear, depending on your needs you could build a 30 stock portfolio for example with 50% of the money in your 10 favorite stocks, and the other 50% allocated equally into the next 20. In my opinion there is no hard and fast rule. It comes down to your own risk tolerances, needs, goals and objectives.Regards, Chuck
What is your opinion on investing in index funds / etf's in today's overvalued market? Approximately 40% of the S&P is overvalued, so I wouldn't be comfortable with investing in them. Would you say that searching for businesses trading under their intrinsic value (and I can say, that aren't a lot) and therefore working with a mos outperform the S&P the coming three years? Thanks for the video Chuck.
For what it is worth.... Chuck has convinced me to start selling my ETFs.... And start replacement with value stocks. My decision is largely due to the nose bleed valuation.
Uncle Chuck thank you. After this series, maybe do one for us for the kids. Mine are 2 and 5. They got tons of time on their side. What should we be accumulating for them in this frothy market?
Chuck WBA at google has a 18.3 PE Marketwatch 18.3 and seeking alpha forward 10.04 - your fast graphs has it blended at 9.68. I watch almost all your videos. I'm getting my income from my portfolio up to the monthly cost of fast graphs so i can pay for it haha. BUT can you explain why there is such a difference? I'm assuming other than FG and seeking them are right now PE not forward looking PE based on EPS potential. Thanks
NienJuanAte, There really is no discrepancy. What you’re seeing on different sites will either be different earnings metrics such as diluted (GAAP) versus the operating earnings that I am reporting. However, all of those metrics are also available on FAST Graphs. Here is a link on our website to a full explanation: www.fastgraphs.com/blog/documentation/blended-p-e/I
It's amazing how many of the dividend aristocrats have been overvalued for a decade or more. These days, I'm inclined to tell a novice investor that if they have heard of the company, it's probably overvalued. I'm eager to see how many of your picks are already in my portfolio. Thanks, Chuck.
After following your amazing work for quit some time I feel like you're my 'virtual rich dad'. I wish I also could jump from stock to stock as fast as you do when using Fastgraphs haha
Over half an hour and I wasn't yelled at ONCE, nor was there fire and doom in the thumbnail. Is this even a finance video on youtube? Thanks though! ;D
I love your content. Fundamentally, I’m so glad I found your channel… for the short and long term. You’re a CFA? How can I get connected on that aspect?
@@joebonanno1460 agreed. If it is a C corporation, then no K-1. Partnerships and LLCs are pass through entities, thus the K-1 so the investors pay their share of the income tax since the business does not.
The problem is that when I watch your videos I immediately want to put yet another stock into my portfolio! There are already too many mouths to feed already! How many stocks are too many stocks? I'd be embarrassed to tell you how many I have in my three investment accounts. It's probably... off the top of my head... about 60 stocks. And I'm sitting here enjoying a beer and another fine FAST Graphs video making a note to buy Global Life and Unum. I also have a FAST Graphs note to buy Omega Health (which you had said you liked a lot in one video?) which I noticed wasn't mentioned here. I'm 64 and need more self-control when buying stocks. Watching FAST Graphs for me is like going to the grocery store hungry. I'd like to buy the Bank of Nova Scotia stock but I also own Enbridge and lose about 15% of the dividend value because of the Canadian government taking their taxes out.
@@patricksapp8034 also long ENB and BNS, but in my solo 401k. As you noted, no 15% tax. Long PBA, SJR in a Roth IRA. Roth is definitely best for avoiding all taxes, including foreign ones. The extra 15% is significant to be sure.
@@cliffluxion7019 Is it a break in Roth only? I have ENB in my traditional IRA with Fidelity. I noticed that ENB is paying about 84¢ a share and I'm getting a 66¢ payout per share.
@@paulfiedler9128 not sure. Never tried it. But I think you are confused. Enbridge pays 66 cents..... In US dollars. I think you are getting hung up on the exchange rate. Remember.... It is a Canadian company. They report in looney. 84 to 66 is way more than 15% anyway. Hope that helps.
How would you construct a portfolio for somebody who needs to retire sooner rather than later? I am 39 years old and I'm sitting here retirement go over age 55. I might not have to retire at that age, but due to health reasons, I would like to at least have the option you start drawing from the portfolio at that age. My health concerns stem back to a car accident I was in as a teenager and it's finally starting to catch up on me. My current investment strategy is the go all in on dividend reinvestment and dividend growth. I have learned a lot in your videos and will happily consider any advice you have to give. Thank you for your time!
I could also be more specific of a help. I currently have $41,000 invested. My goal is put $10,000 in every year for the next 16 years. In the end, I'm hoping to make between $25,000 and $30,000 in dividends by age 55. Not necessarily enough to retire on and it's less than what I'm making now. But, it would certainly give me the option to either slow down my work if I need to or file for disability in addition to collecting dividends. I think on the right budget in the right location, a goal like that is reasonable.
John, if your goal and objective is long-term ownership I would consider BABA extremely undervalued today. However, the risk of investing in Chinese stocks should not be ignored or even underestimated. Regards, Chuck
As a frequent (2-3 times per year) pre-pandemic China visitor and holder of now-delisted China Mobile ADRs (former NYSE ticker CHL), I strongly advise you to become intimately familiar with the relationship between China's government and "private" enterprise, with what you're really physically buying when investing in listed Chinese securities (it frequently isn't the actual underlying shares), and with geopolitical risk (which can spike far quicker than you can respond). If, after feeling sufficiently informed, you still want to invest risk capital in such vehicles, you'd be wise to invest only "mad money" you can afford to lose completely. See Luckin Coffee for a cautionary example. Finally, note that if Jack Ma can go missing for 3+ months, your investment surely can as well.
Great video, why don't you start by looking at a PEG ratio, since your fast graphs line is based on usually a growth rate of 15%? I am confused. Thanks
Morgan: with all due respect you are confused. FAST Graphs valuation reference line is not based on a growth rate of 15%. Instead, it is based on the P/E ratio of 15 for most companies whose earnings are growing up to 15%. Once the company's earnings growth is 15% or higher than Peter Lynch's formula P/E ratio equal to earnings growth rate is automatically applied. Just so you're clear, that means a PEG ratio of 1. Also, what really matters is whether or not the valuation reference line actually provides a clear picture of the price relative to its intrinsic value. For low growth companies we utilize Ben Graham's formula and for companies growing at 5% to 15% we use an extrapolation of the 2. Finally, the reason I don't start looking at a PEG ratio is because it simply doesn't apply as a relevant valuation reference for most companies. Ideally a the company is fairly valued when it's PEG ratio equals 1. Therefore, a company like utility stock with a 2% growth rate would have a PEG ratio of 7 1/2 which would suggest is massively overvalued if its P/E ratio was equal to 1. That doesn't clear up and you can go on our website and do our research terminal you'll find plenty of research covering the subject. Regards, Chuck
@@FASTgraphs Ok much clearer, however, Peter would add the dividend to the earnings growth, so a utility would be 2%+ 4%, hence 6% "growth rate". But let me look on your website. I have a subscription but I guess I am miss using it.
@@FASTgraphs thanks, so Peter would add the dividend to the growth rate. So a utility would be 2% earnings growth plus a dividend of say 4%= 6%. So a PEG of SO, is p/e divided by 6 gives 19/6=3.2. Like you said high market values. Ok I now think I understand, that the formula switches to Dodd Graham when slower earnings rate of 15%, and of course this depends on the time frame selected, so two questions, what is a good time frame to measure or should it be three time points say 20, 12, 5 years and second question what do you see as the average earnings growth rate of dividend aristocrats? Much thanks
Question for you, Mr. Carnevale: do you tend to customize/diversify a portfolio at the GISC sector level, industry level, or sub-industry level? Or is it typically some combination therein in order to customize to individual needs? I know FG shows sub-industry, but just wondering if you have basic principles to share. Thank you!
Doug: the simple answer to your question is I attempted diversify relative to all 3. I prefer concentrated portfolios of 20 to 30 stocks. The central idea is to have enough diversification to protect you but enough concentration to enable you to perform according to your objectives. The fewer stocks you own the more knowledge you can have of each 1. Additionally, since there are only 11 GICS sectors, if you own 20 stocks for example, you would have to have more than one in certain sectors. However, as you also pointed out each sector is broken down into subindustry classifications. Consequently, you could diversify even if you own several stocks in one broad sector. Finally, I am more concerned with quality and valuation that I am the general sectors. Hope that clarifies it, Chuck
Chuck … please … please keep doing these videos !! I literally wait every week for these. When will you be starting the VALUEU videos on analyzing / dissecting the numbers provided by the companies?
Haven’t watched the video, but I feel for Francisco. My mother was recently widowed and she has tasked me with managing her money (despite my protests she should talk to a financial advisor) because I’ve made some money here and there with meme stocks. Your videos have been extraordinarily helpful in building my knowledge here. Best single source. Still probably going to surreptitiously consult financial advisors when I’ve constructed it.
Thanks Sir, I live in Turkey. dollar/try : 8.50 if you had 15000 dollars earned difficultly which company/companies would you recommend to invest tomorrow for dividend income? If you do not answer I appreciate
Faith atasoy: thanks for the question. However in order to answer it effectively I would need more information. You need current income, maximum income, income growth etc. I will be covering some of this in my next video so you might watch for it. Otherwise if you give you more information try to give you my opinion. Regards, Chuck
@@FASTgraphs thanks for responding Sir. Monthly my income is approximately 2.500 dollars per month (If turkish lira doesn't devaluate more);almost fixed. Income growth may be 5% more next year. I can save 500 dollars per month. Best regards
Thank you so very much for this extremely helpful and insightful video. The fact that it is attuned to our questions and concerns makes it just that much more awesome. We are grateful for your specific efforts.
I am a new investor, If I may ask, what is your average annual return with your approach in stock investing. I am not calling you out or anything, I am just curious how an experienced investor like you been doing and it would definitely motivate us as most of them are used to the post 08 market condition or max would be tech bubble
Popkahchin: because I customize every portfolio to the specific goals and objectives of each individual client, I do not report performance. Furthermore, I manage each portfolio to a specific return objective which might be income or total return etc. Thus far my accounts have all met those objectives .
Hi Chuck, I have accidentally discovered your channel and I am impressed by the quality of presented information. I am scanning through older as well as newer videos and I am overwhelmed by the amount of information available. However, I don't remember seeing a video about general investment mindset and whatnot. As a new to the world of investing, I find it very difficult to find a good info about general investment mindset for newcomers. What to look for, how to plan, what to avoid. Having a fantastic overview about some stocks is superb but those who are new to the space have little clue where to start the investment path. Also, once one have bought the asset, what next? Because this is a life long journey, it would be very helpful to have some general overview on the topic. Thanks.
Thanks for this great series! One thing I'd like to ask though: how come that you never really talk about stocks like Exxon or chevron? Do you think they're overvalued or don't you like the sector? I'm looking forward to your answer
MuskY: most energy stocks including the 2 you mentioned are struggling to produce any profitability currently, Consequently, I am ttaking a watch and see attitude although I am long both of the names you mentioned.
Mr. Carnevale - I watch all your videos and I find them all helpful and I feel like I walk away better informed. I came away feeling this one was particularly helpful because you breezed through about 50 stocks which gives us numerous ideas to research further and gives us a good idea as to which sectors of the overall market appear to be undervalued. Maybe you could do a video like this once a quarter. Thank you for the time you devote and the product you make available. - Mike
Thanks for all your effort. This has been an eye opener to all the value that remains in an overpriced market, if you know how to find it. "It's a market of stocks, not a stock market."
Mr Valuation, Salute! Reits man, I know Reits offer high contributions basically because they have to, what is the difference between contributions and dividends .I would like to hear from a highly admirable individual as yourself, What metrics and proccess has worked well for your succesful REIT investements, apart from the metrics mentioned here if any different.
Jesus: I apologize if I am wrong, but I think you are asking about the difference between distributions versus dividends. With REITs what they paid to shareholders is technically a distribution but it is commonly referred to as a dividend. Therefore, in essence there is no difference as a practical matter. Hope that clarifies it, Chuck
Hey Chuck, thanks so much for sharing your knowledge on this channel, I greatly appreciate it. In this high valued, somewhat dangerous, market I was wondering if you could give some advice and research candidates to someone who is in their 20s investing with a 30 year time horizon and adding something like $1000 per month to stocks rather than buying them upfront. Thank you!
Really looking forward to the portfolio allocation & strategy going forward. Chuck, you've been quite resourceful and helped me out with figuring out quite a lot of things on the game of investing. I believe with the help of FastGraphs we're going to have an edge over the general market. Thanks and I'll see you in the next one, Stoyan
Practical question. When selecting individual stocks from bigger lists to add to your watchlist, is there an easy way on the pre-selected portfolios to designate the stocks that you want to research further by adding to that watchlist portfolio? For instance, you mentioned multiple regional banks. How do you add the few regional banks to your income portfolio of 130 stocks for further review? Is there a way to do it short of just writing the names down and creating the portfolio by hand? Thank you for everything!
Gary: regarding regional banks I think it makes sense to choose one that is in your area that you might be familiar with all other things remaining equal such as valuation yield etc.
Thanks for the videos and the effort. In terms of value, I'm not so sure whether a reconsideration might have to be made. The average is rising and in today's times there is a lot more capital and money, it may be that PE 20 is the new 15. The future will show. Greetings from Germany, i really enjoy your content! Much health and a long life for you
avsthomas: I have been doing this for 50 years and I’ve lived through numerous bubbles. The nifty 50 era, the irrational exuberant era, the tech bubble and others. In each 1, I heard the same refrain and it always ended badly for those that attempted to rationalize low returns as normal. The inverse of the P/E ratio (E/P) is the earnings yield. A 20 P/E ratio represents an earnings yield of 5%. In simple terms that means that if the company you invested in paid you 100% of the profits they earned your return would be 5%. That is an inadequate return for the level of risk taken to invest in stocks. Keep in mind that the dividend if any would usually be half of that number or less. As I said a million times, Ben Graham’s metaphor in the short run the market is a voting machine but in the long run it is a weighing machine applies here. You may be correct over the shorter run that the market value will temporarily be aberrantly high because people are pouring money into stocks increasing their valuations. However, the intrinsic value of the stock does not change. A 6 ½% minimum return is better than a 5% rate of return etc. Higher valuations imply higher risk and the willingness to take a lower rate of return as a result of assuming it. That has never made sense to me and never will because the principles of business economics and accounting do not change. Thanks for the kind words regarding my content, but as your thesis, I personally reject it. Investing in stocks is risky, and the best wrist mitigate or is exercising the discipline to only invest when valuation is sound or attractive. The lower the valuation the better assuming the fundamentals remain intact. Thanks, Chuck
@@FASTgraphs seems to me that there is always a tradeoff. You might buy reasonable valuations but accept to go from „creme de la creme“ companies to lower quality companies to achieve this which in itself increases risk. So who knows - better holding JNJ richly valued or some other stock fairly valued.
@@bastianstieg819 My only response to your statement would be that lower quality does not mean no quality. Additionally, in my humble opinion the best way to mitigate or reduce risk is through only being willing to purchase when valuations are sound. In contrast, paying a premium valuation even for great company like Johnson & Johnson increases your risk and simultaneously lowers your rate of return. In other words, AAA rated Johnson & Johnson is not a low risk investment when you pay too much to invest in it despite its impeccable quality. My personal opinion, Chuck
chuck the 🐐
Chuck thank you. Greetings from Germany.
Epic video 👊🏼👍🙌🙏🏽⛏thank you Mr. Valuation 🙏🏽❤️🎊
For part #2 what is the maximum allocation you will give to any 1 stock regardless of cheapness or conviction? Thanks !!
Chuck, it depends on the goals, objectives and needs of the portfolio. I will address this generally in part 2. But to be clear, depending on your needs you could build a 30 stock portfolio for example with 50% of the money in your 10 favorite stocks, and the other 50% allocated equally into the next 20. In my opinion there is no hard and fast rule. It comes down to your own risk tolerances, needs, goals and objectives.Regards, Chuck
Chuck superman Batman and all the good marvel superpower characters combined!
How much cash do you have on sideline 5,10, or more percentage ?
great video chuck your the man
Really appreciate all your work and passion. You're one of my favorite TH-camrs for this subject matter. Keep up the great work!
Good video
👍🙏 great great great many thanks !!!!
What is your opinion on investing in index funds / etf's in today's overvalued market? Approximately 40% of the S&P is overvalued, so I wouldn't be comfortable with investing in them. Would you say that searching for businesses trading under their intrinsic value (and I can say, that aren't a lot) and therefore working with a mos outperform the S&P the coming three years? Thanks for the video Chuck.
For what it is worth.... Chuck has convinced me to start selling my ETFs.... And start replacement with value stocks. My decision is largely due to the nose bleed valuation.
Hi Chuck, Thanks you discipline me Not to buy to expensive !!!!
thanks!
Thanks Chuck, your doing a GREAT JOB!!! THANK YOU !!!!
Chuck, you change the investment game for me. Appreciate you as a subscriber of fast graphs.
Uncle Chuck thank you. After this series, maybe do one for us for the kids. Mine are 2 and 5. They got tons of time on their side. What should we be accumulating for them in this frothy market?
Thanks for awesome comtent
Chuck WBA at google has a 18.3 PE Marketwatch 18.3 and seeking alpha forward 10.04 - your fast graphs has it blended at 9.68. I watch almost all your videos. I'm getting my income from my portfolio up to the monthly cost of fast graphs so i can pay for it haha. BUT can you explain why there is such a difference? I'm assuming other than FG and seeking them are right now PE not forward looking PE based on EPS potential. Thanks
NienJuanAte,
There really is no discrepancy. What you’re seeing on different sites will either be different earnings metrics such as diluted (GAAP) versus the operating earnings that I am reporting. However, all of those metrics are also available on FAST Graphs. Here is a link on our website to a full explanation:
www.fastgraphs.com/blog/documentation/blended-p-e/I
It's amazing how many of the dividend aristocrats have been overvalued for a decade or more. These days, I'm inclined to tell a novice investor that if they have heard of the company, it's probably overvalued. I'm eager to see how many of your picks are already in my portfolio. Thanks, Chuck.
Great video. Greetings from Hungary
Chuck..... I wish I had come across you long ago. Or... I had just been smarter. Either way.... You are a big help.
After following your amazing work for quit some time I feel like you're my 'virtual rich dad'.
I wish I also could jump from stock to stock as fast as you do when using Fastgraphs haha
Ron, thank you for the kind words. Regarding speed, coming soon. We appreciate your patience. Regards, Chuck
Great topic. Thx chuck.
Thanks, excellent video like all you produce. Wonder if one day you could analyze refiners like VLO or PSX, thanks
ALB - what a great video that was in '19. Thanks, Chuck
Excellent presentation.
So glad I discoverer this channel.
Really glad I recently found your channel (subbed) awesome content, can't wait for part two!
Over half an hour and I wasn't yelled at ONCE, nor was there fire and doom in the thumbnail. Is this even a finance video on youtube? Thanks though! ;D
Yes Virginia there is a Santa Claus! LOL
I love your content. Fundamentally, I’m so glad I found your channel… for the short and long term.
You’re a CFA? How can I get connected on that aspect?
A list for my advisor
Can’t wait for part two
Awesome content
Awesome content, thanks so much, Chuck!
good start of the weekend with a FASTgraphs video.
Can i find a site which shows me if a company issue K1 for or it is a normal tax dividend?
Is the company a C corp or LP? The investor area of a company's website will show you for sure.
@@joebonanno1460 agreed. If it is a C corporation, then no K-1. Partnerships and LLCs are pass through entities, thus the K-1 so the investors pay their share of the income tax since the business does not.
The problem is that when I watch your videos I immediately want to put yet another stock into my portfolio! There are already too many mouths to feed already! How many stocks are too many stocks? I'd be embarrassed to tell you how many I have in my three investment accounts. It's probably... off the top of my head... about 60 stocks. And I'm sitting here enjoying a beer and another fine FAST Graphs video making a note to buy Global Life and Unum. I also have a FAST Graphs note to buy Omega Health (which you had said you liked a lot in one video?) which I noticed wasn't mentioned here. I'm 64 and need more self-control when buying stocks. Watching FAST Graphs for me is like going to the grocery store hungry. I'd like to buy the Bank of Nova Scotia stock but I also own Enbridge and lose about 15% of the dividend value because of the Canadian government taking their taxes out.
I hold Enbridge in my Roth IRA. It gets you around paying Trudeau. It is much the same way the Roth gets you around the funky taxes on REITs.
@@patricksapp8034 also long ENB and BNS, but in my solo 401k. As you noted, no 15% tax. Long PBA, SJR in a Roth IRA. Roth is definitely best for avoiding all taxes, including foreign ones. The extra 15% is significant to be sure.
@@cliffluxion7019 Is it a break in Roth only? I have ENB in my traditional IRA with Fidelity. I noticed that ENB is paying about 84¢ a share and I'm getting a 66¢ payout per share.
@@patricksapp8034 Thank you. Is that for Roth only or does it work that way with a traditional IRA?
@@paulfiedler9128 not sure. Never tried it. But I think you are confused. Enbridge pays 66 cents..... In US dollars. I think you are getting hung up on the exchange rate. Remember.... It is a Canadian company. They report in looney. 84 to 66 is way more than 15% anyway. Hope that helps.
Some of the tobacco companies are interesting, strong cashflow and high dividends. The question is for how long can they sustain that? Mmm
How would you construct a portfolio for somebody who needs to retire sooner rather than later? I am 39 years old and I'm sitting here retirement go over age 55. I might not have to retire at that age, but due to health reasons, I would like to at least have the option you start drawing from the portfolio at that age. My health concerns stem back to a car accident I was in as a teenager and it's finally starting to catch up on me. My current investment strategy is the go all in on dividend reinvestment and dividend growth. I have learned a lot in your videos and will happily consider any advice you have to give. Thank you for your time!
I could also be more specific of a help. I currently have $41,000 invested. My goal is put $10,000 in every year for the next 16 years. In the end, I'm hoping to make between $25,000 and $30,000 in dividends by age 55. Not necessarily enough to retire on and it's less than what I'm making now. But, it would certainly give me the option to either slow down my work if I need to or file for disability in addition to collecting dividends. I think on the right budget in the right location, a goal like that is reasonable.
Much appriciated, from Italy. ( Are you of italian origin? 😄)
Reno: yes I am half Italian, my father was Italian my mother Polish. Both sets of my grandparents came from their respective “old countries”.
@@FASTgraphs Cool! You honor the name of your old country :) I studied macroeconomics and i'm learning a lot from your videos. Thank you so much
Alibaba has been dropping, should we be buying it or running from it?
John, if your goal and objective is long-term ownership I would consider BABA extremely undervalued today. However, the risk of investing in Chinese stocks should not be ignored or even underestimated. Regards, Chuck
As a frequent (2-3 times per year) pre-pandemic China visitor and holder of now-delisted China Mobile ADRs (former NYSE ticker CHL), I strongly advise you to become intimately familiar with the relationship between China's government and "private" enterprise, with what you're really physically buying when investing in listed Chinese securities (it frequently isn't the actual underlying shares), and with geopolitical risk (which can spike far quicker than you can respond).
If, after feeling sufficiently informed, you still want to invest risk capital in such vehicles, you'd be wise to invest only "mad money" you can afford to lose completely. See Luckin Coffee for a cautionary example.
Finally, note that if Jack Ma can go missing for 3+ months, your investment surely can as well.
The vid ive waited for.
Great video, why don't you start by looking at a PEG ratio, since your fast graphs line is based on usually a growth rate of 15%? I am confused. Thanks
Morgan: with all due respect you are confused. FAST Graphs valuation reference line is not based on a growth rate of 15%. Instead, it is based on the P/E ratio of 15 for most companies whose earnings are growing up to 15%. Once the company's earnings growth is 15% or higher than Peter Lynch's formula P/E ratio equal to earnings growth rate is automatically applied. Just so you're clear, that means a PEG ratio of 1.
Also, what really matters is whether or not the valuation reference line actually provides a clear picture of the price relative to its intrinsic value. For low growth companies we utilize Ben Graham's formula and for companies growing at 5% to 15% we use an extrapolation of the 2.
Finally, the reason I don't start looking at a PEG ratio is because it simply doesn't apply as a relevant valuation reference for most companies. Ideally a the company is fairly valued when it's PEG ratio equals 1. Therefore, a company like utility stock with a 2% growth rate would have a PEG ratio of 7 1/2 which would suggest is massively overvalued if its P/E ratio was equal to 1.
That doesn't clear up and you can go on our website and do our research terminal you'll find plenty of research covering the subject. Regards, Chuck
@@FASTgraphs Ok much clearer, however, Peter would add the dividend to the earnings growth, so a utility would be 2%+ 4%, hence 6% "growth rate". But let me look on your website. I have a subscription but I guess I am miss using it.
@@FASTgraphs thanks, so Peter would add the dividend to the growth rate. So a utility would be 2% earnings growth plus a dividend of say 4%= 6%. So a PEG of SO, is p/e divided by 6 gives 19/6=3.2. Like you said high market values. Ok I now think I understand, that the formula switches to Dodd Graham when slower earnings rate of 15%, and of course this depends on the time frame selected, so two questions, what is a good time frame to measure or should it be three time points say 20, 12, 5 years and second question what do you see as the average earnings growth rate of dividend aristocrats? Much thanks
Question for you, Mr. Carnevale: do you tend to customize/diversify a portfolio at the GISC sector level, industry level, or sub-industry level? Or is it typically some combination therein in order to customize to individual needs? I know FG shows sub-industry, but just wondering if you have basic principles to share. Thank you!
Doug: the simple answer to your question is I attempted diversify relative to all 3. I prefer concentrated portfolios of 20 to 30 stocks. The central idea is to have enough diversification to protect you but enough concentration to enable you to perform according to your objectives. The fewer stocks you own the more knowledge you can have of each 1.
Additionally, since there are only 11 GICS sectors, if you own 20 stocks for example, you would have to have more than one in certain sectors. However, as you also pointed out each sector is broken down into subindustry classifications. Consequently, you could diversify even if you own several stocks in one broad sector. Finally, I am more concerned with quality and valuation that I am the general sectors. Hope that clarifies it, Chuck
@@FASTgraphs thank you very much for taking the time to share your insight!
Thanks Chuck, looking forward for part 2
Chuck … please … please keep doing these videos !! I literally wait every week for these. When will you be starting the VALUEU videos on analyzing / dissecting the numbers provided by the companies?
Wish I could like this twice Chuck! I have NEE and it looks over valued but it’s one of those staple companies
Haven’t watched the video, but I feel for Francisco. My mother was recently widowed and she has tasked me with managing her money (despite my protests she should talk to a financial advisor) because I’ve made some money here and there with meme stocks. Your videos have been extraordinarily helpful in building my knowledge here. Best single source. Still probably going to surreptitiously consult financial advisors when I’ve constructed it.
Thanks Sir, I live in Turkey. dollar/try : 8.50 if you had 15000 dollars earned difficultly which company/companies would you recommend to invest tomorrow for dividend income? If you do not answer I appreciate
Faith atasoy: thanks for the question. However in order to answer it effectively I would need more information. You need current income, maximum income, income growth etc. I will be covering some of this in my next video so you might watch for it. Otherwise if you give you more information try to give you my opinion. Regards, Chuck
@@FASTgraphs thanks for responding Sir. Monthly my income is approximately 2.500 dollars per month (If turkish lira doesn't devaluate more);almost fixed. Income growth may be 5% more next year. I can save 500 dollars per month. Best regards
Thank you so very much for this extremely helpful and insightful video. The fact that it is attuned to our questions and concerns makes it just that much more awesome.
We are grateful for your specific efforts.
I am a new investor, If I may ask, what is your average annual return with your approach in stock investing. I am not calling you out or anything, I am just curious how an experienced investor like you been doing and it would definitely motivate us as most of them are used to the post 08 market condition or max would be tech bubble
Popkahchin: because I customize every portfolio to the specific goals and objectives of each individual client, I do not report performance. Furthermore, I manage each portfolio to a specific return objective which might be income or total return etc. Thus far my accounts have all met those objectives .
@@FASTgraphs awesome!! Thanks for the answer! Its been great watching you explaining different approaches to investments.
Hi Chuck, I have accidentally discovered your channel and I am impressed by the quality of presented information. I am scanning through older as well as newer videos and I am overwhelmed by the amount of information available. However, I don't remember seeing a video about general investment mindset and whatnot. As a new to the world of investing, I find it very difficult to find a good info about general investment mindset for newcomers. What to look for, how to plan, what to avoid. Having a fantastic overview about some stocks is superb but those who are new to the space have little clue where to start the investment path. Also, once one have bought the asset, what next? Because this is a life long journey, it would be very helpful to have some general overview on the topic. Thanks.
myka: if I understand your question correctly I will be addressing parts of it at least in the next video. Regards, Chuck
@@FASTgraphs thank you, I appreciate it!
Thanks for this great series! One thing I'd like to ask though: how come that you never really talk about stocks like Exxon or chevron? Do you think they're overvalued or don't you like the sector?
I'm looking forward to your answer
MuskY: most energy stocks including the 2 you mentioned are struggling to produce any profitability currently, Consequently, I am ttaking a watch and see attitude although I am long both of the names you mentioned.
@@FASTgraphs thanks Chuck. I'm long Exxon too and up 30% but I'm not to sure about the long-term outlook
Mr. Carnevale - I watch all your videos and I find them all helpful and I feel like I walk away better informed. I came away feeling this one was particularly helpful because you breezed through about 50 stocks which gives us numerous ideas to research further and gives us a good idea as to which sectors of the overall market appear to be undervalued. Maybe you could do a video like this once a quarter. Thank you for the time you devote and the product you make available. - Mike
Thanks for all your effort. This has been an eye opener to all the value that remains in an overpriced market, if you know how to find it. "It's a market of stocks, not a stock market."
Chuck with the present climate and environment do you do a monthly paying dividend portfolio
Thank you very very much. Incredible video, and looking forward to part II!
Mr Valuation, Salute!
Reits man, I know Reits offer high contributions basically because they have to, what is the difference between contributions and dividends .I would like to hear from a highly admirable individual as yourself, What metrics and proccess has worked well for your succesful REIT investements, apart from the metrics mentioned here if any different.
Jesus: I apologize if I am wrong, but I think you are asking about the difference between distributions versus dividends. With REITs what they paid to shareholders is technically a distribution but it is commonly referred to as a dividend. Therefore, in essence there is no difference as a practical matter. Hope that clarifies it, Chuck
Great channel I've listened to your tsn stock analysis and im currently up over 13 percent with great dividend growth on the horizon thank you sir
Hey Chuck, thanks so much for sharing your knowledge on this channel, I greatly appreciate it. In this high valued, somewhat dangerous, market I was wondering if you could give some advice and research candidates to someone who is in their 20s investing with a 30 year time horizon and adding something like $1000 per month to stocks rather than buying them upfront. Thank you!
Really looking forward to the portfolio allocation & strategy going forward. Chuck, you've been quite resourceful and helped me out with figuring out quite a lot of things on the game of investing. I believe with the help of FastGraphs we're going to have an edge over the general market.
Thanks and I'll see you in the next one,
Stoyan
Practical question. When selecting individual stocks from bigger lists to add to your watchlist, is there an easy way on the pre-selected portfolios to designate the stocks that you want to research further by adding to that watchlist portfolio? For instance, you mentioned multiple regional banks. How do you add the few regional banks to your income portfolio of 130 stocks for further review? Is there a way to do it short of just writing the names down and creating the portfolio by hand? Thank you for everything!
Gary: regarding regional banks I think it makes sense to choose one that is in your area that you might be familiar with all other things remaining equal such as valuation yield etc.
@@FASTgraphs Thank you!
Thanks for the videos and the effort. In terms of value, I'm not so sure whether a reconsideration might have to be made. The average is rising and in today's times there is a lot more capital and money, it may be that PE 20 is the new 15. The future will show. Greetings from Germany, i really enjoy your content! Much health and a long life for you
avsthomas: I have been doing this for 50 years and I’ve lived through numerous bubbles. The nifty 50 era, the irrational exuberant era, the tech bubble and others. In each 1, I heard the same refrain and it always ended badly for those that attempted to rationalize low returns as normal. The inverse of the P/E ratio (E/P) is the earnings yield. A 20 P/E ratio represents an earnings yield of 5%. In simple terms that means that if the company you invested in paid you 100% of the profits they earned your return would be 5%. That is an inadequate return for the level of risk taken to invest in stocks. Keep in mind that the dividend if any would usually be half of that number or less.
As I said a million times, Ben Graham’s metaphor in the short run the market is a voting machine but in the long run it is a weighing machine applies here. You may be correct over the shorter run that the market value will temporarily be aberrantly high because people are pouring money into stocks increasing their valuations. However, the intrinsic value of the stock does not change. A 6 ½% minimum return is better than a 5% rate of return etc. Higher valuations imply higher risk and the willingness to take a lower rate of return as a result of assuming it. That has never made sense to me and never will because the principles of business economics and accounting do not change.
Thanks for the kind words regarding my content, but as your thesis, I personally reject it. Investing in stocks is risky, and the best wrist mitigate or is exercising the discipline to only invest when valuation is sound or attractive. The lower the valuation the better assuming the fundamentals remain intact. Thanks, Chuck
@@FASTgraphs don't mince words , Chuck. What do you really think? 🤣
@@FASTgraphs seems to me that there is always a tradeoff. You might buy reasonable valuations but accept to go from „creme de la creme“ companies to lower quality companies to achieve this which in itself increases risk.
So who knows - better holding JNJ richly valued or some other stock fairly valued.
@@bastianstieg819 My only response to your statement would be that lower quality does not mean no quality. Additionally, in my humble opinion the best way to mitigate or reduce risk is through only being willing to purchase when valuations are sound. In contrast, paying a premium valuation even for great company like Johnson & Johnson increases your risk and simultaneously lowers your rate of return. In other words, AAA rated Johnson & Johnson is not a low risk investment when you pay too much to invest in it despite its impeccable quality. My personal opinion, Chuck